The current sections of Sage Hill Inc.$\text{'}$s balance sheets at December $31,2024$ and $2025,$ are presented here. Sage Hill's net income for

$2025$ was $$275,400.$ Depreciation expense was $$48,600.$

Prepare the operating activities section of the company's statement of cash flows for the year ended December $31,2025,$ using the

indirect method. $($Show amounts that decrease cash flow with either a $-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000).)$

SAGE HILL INC.

Statement of Cash Flows $($Partial$)-$ Indirect Method

For the Year Ended December $31,2025$

Adjustments to reconcile net income to

$[$Net Cash Prowided by Operating Activities f$]$:

Decrease in Accounts Receivable

Decrease in limentory

Increase in Prepaid Expenses

Increase in Accrued Expenses Payable

Decrease in Accounts Payable

$|$Net Cash Prowided bv Operatine Activities A

$